HHS awarded $28.1M to Avram Corporation for administrative management consulting services over five years

Contract Overview

Contract Amount: $28,095,805 ($28.1M)

Contractor: Avram Corporation Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-28

End Date: 2021-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS

Plain-Language Summary

Department of Health and Human Services obligated $28.1 million to AVRAM CORPORATION INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. The contract's value of $28.1 million over five years suggests a significant investment in management consulting. 2. Full and open competition after exclusion of sources indicates a deliberate procurement strategy to ensure broad market access. 3. The firm fixed-price contract type shifts performance risk to the contractor, potentially leading to cost efficiencies. 4. The duration of 1825 days (5 years) allows for sustained support and potential for deep integration with agency needs. 5. The North American Industry Classification System (NAICS) code 541611 points to a focus on general management consulting. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The contract value of $28.1 million over five years averages to approximately $5.6 million annually. Benchmarking this against similar administrative management consulting contracts within the federal government requires detailed analysis of scope and deliverables. Without specific performance metrics or comparable contract data, it's challenging to definitively assess value for money. However, the firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method suggests that while the competition was intended to be open, certain sources may have been excluded for specific reasons, possibly related to prior performance, security, or specialized capabilities. The number of bidders is not specified, but the 'exclusion of sources' implies a potentially narrower field than a purely full and open competition. This could impact price discovery if fewer qualified vendors were able to participate.

Taxpayer Impact: The exclusion of sources, even within an open competition framework, could potentially limit the number of competitive bids received, which might affect the government's ability to secure the lowest possible price for these services. Taxpayers benefit from competition, and any restriction, even if justified, warrants scrutiny to ensure maximum value.

Public Impact

The Centers for Disease Control and Prevention (CDC) is the primary beneficiary, receiving administrative management and general management consulting services. These services are crucial for supporting the operational efficiency and strategic planning of the CDC. The contract likely impacts federal health agencies by improving administrative processes that underpin public health initiatives. Workforce implications may include the engagement of specialized consultants who augment government staff in management and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type raises questions about the breadth of market engagement and potential impact on price competitiveness.
Lack of specific details on the nature of 'administrative management and general management consulting services' makes it difficult to assess the precise value and impact.
The contract's duration of five years, while allowing for sustained effort, also means a significant financial commitment that requires ongoing performance monitoring.

Positive Signals

The firm fixed-price contract type is a positive signal, indicating that the contractor assumes the financial risk for cost overruns.
The award to Avram Corporation Inc. suggests they possess the necessary qualifications and experience to meet the government's needs for these services.
The contract's significant value implies a critical need for these consulting services within the Department of Health and Human Services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for these services is competitive, with numerous firms offering expertise in areas such as organizational efficiency, strategic planning, and operational improvement. The $28.1 million awarded to Avram Corporation represents a substantial investment within this niche, likely aimed at enhancing the operational capabilities of a major health agency.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss=false, sb=false). This suggests that the procurement was open to all eligible contractors, including large businesses. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Avram Corporation voluntarily engages small businesses as subcontractors. Further investigation into subcontracting reports would be needed to ascertain any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' internal contracting and program management offices. The Centers for Disease Control and Prevention (CDC) would also have direct oversight of the contractor's performance. The firm fixed-price nature of the contract shifts some financial risk to the contractor, but performance monitoring remains crucial. Transparency is facilitated by contract databases, but detailed performance reports and Inspector General involvement would depend on specific findings or audits.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Federal Health Agency Support
Professional Services Contracts
Department of Health and Human Services Contracts

Risk Flags

Competition Method: 'Exclusion of Sources' may limit competitive pricing.
Scope Definition: Lack of specific service details requires careful performance monitoring.
Contract Duration: Five-year term necessitates sustained oversight and adaptability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.1 million to AVRAM CORPORATION INC.. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is AVRAM CORPORATION INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2016-09-28. End: 2021-09-27.

What specific administrative management and general management consulting services were provided under this contract?

The contract, identified by NAICS code 541611, pertains to 'Administrative Management and General Management Consulting Services.' While the specific deliverables are not detailed in the provided data, these services typically encompass a broad range of support aimed at improving organizational efficiency and effectiveness. This could include strategic planning, organizational design, process improvement, performance management, and general administrative support. Given the awarding agency is the Centers for Disease Control and Prevention (CDC), the consulting likely focused on enhancing the operational and administrative functions critical to public health initiatives, such as program management, resource allocation, or internal process optimization. A deeper dive into the contract's statement of work (SOW) would reveal the precise nature of the services rendered.

How does the $28.1 million contract value compare to typical spending on similar consulting services within HHS or other federal agencies?

The $28.1 million awarded to Avram Corporation Inc. over five years represents an average annual expenditure of approximately $5.6 million for administrative management and general management consulting services. To benchmark this effectively, one would need to compare it against contracts with similar scope, duration, and complexity within the Department of Health and Human Services (HHS) and other federal agencies. Federal spending on consulting services varies widely based on agency needs and the specific services procured. While $5.6 million annually is a substantial sum, it may be within the expected range for a large federal agency like the CDC requiring comprehensive management support. A detailed analysis of comparable contracts, considering factors like the number of consultants, specific expertise required, and performance outcomes, would be necessary for a precise comparison.

What is the track record of Avram Corporation Inc. in performing federal contracts, particularly those of similar size and scope?

The provided data indicates that Avram Corporation Inc. was awarded this $28.1 million contract by the Department of Health and Human Services (HHS) for administrative management and general management consulting services. To assess their track record, one would need to examine their past performance on other federal contracts. This includes reviewing contract history for timeliness of delivery, quality of work, adherence to budget (though this contract is firm-fixed-price), and any past performance issues or awards. Information on previous contracts, their values, and client agencies would be crucial. A review of federal procurement databases and potentially past performance evaluations (if publicly available) would offer insights into Avram Corporation's reliability and expertise in fulfilling government requirements.

What are the potential risks associated with a five-year firm fixed-price contract for consulting services?

A five-year firm fixed-price (FFP) contract for consulting services presents both benefits and risks. The primary benefit of FFP is that it shifts cost overrun risk to the contractor, providing budget certainty for the government. However, risks can emerge if the contract's scope is not clearly defined or if unforeseen complexities arise during the five-year period. The contractor might be incentivized to cut corners to maintain profitability, potentially impacting service quality. Conversely, if the contractor underestimates the effort required, they could incur losses, potentially leading to reduced performance or even contract termination. For the government, the risk lies in potentially paying a premium if the contractor's initial price was high to cover contingencies, or if the scope needs significant adjustments that are costly to implement under FFP terms. Robust performance monitoring is essential to mitigate these risks.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact competition and potentially taxpayer value?

The procurement method 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be open to all responsible sources, certain entities were intentionally excluded. The reasons for exclusion are not specified but could relate to factors like security clearances, specific technical capabilities, or past performance issues. This exclusion narrows the field of potential bidders compared to a standard 'full and open' competition. While it aims to ensure that only qualified and appropriate vendors participate, it can potentially limit the number of bids received. Fewer bids might lead to less aggressive pricing and reduced competitive pressure, potentially resulting in a higher cost for taxpayers than if a broader range of vendors had competed. The justification for excluding sources is critical in determining if this method ultimately served the government's best interest and taxpayer value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2016N17867

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1125 NE 125TH ST STE 300, NORTH MIAMI, FL, 33161

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,372,038

Exercised Options: $28,372,038

Current Obligation: $28,095,805

Actual Outlays: $572,149

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline